UtahS.B. 2292026 General SessionSenateWALLET

State Employee Benefits Amendments

Sponsored By: Lincoln Fillmore (Republican)

Signed by Governor

Labor and EmploymentDivision of Human Resource ManagementPublic Retirement and InsuranceLegislative OperationsLegislative Employees and CompensationState Officers and EmployeesDivision of FinancePublic Employees Insurance and BenefitsPublic Employees RetirementUtah Retirement Systems (URS)Tier 1 RetirementTier 2 Retirement

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Bill Overview

Analyzed Economic Effects

7 provisions identified: 5 benefits, 1 costs, 1 mixed.

State workers can save unused leave

When Utah state employees leave their job or retire, they can convert unused annual leave or paid time off into retirement savings. Employees must choose a Utah State Retirement Board-sponsored 401(k) or 457 account. The conversion uses their pay rate when they leave or retire. Federal annual contribution limits apply.

State workers get tier-based retirement matches

Qualifying Utah state employees must contribute their own money to receive an employer retirement match; specified reemployed workers are excluded. Before the Division of Finance's change date, the match is dollar-for-dollar, up to $26 every two weeks. After that date, qualifying Tier I members and legacy employees keep that match. Qualifying Tier II members who are not legacy employees get a full match on their first $26 and 50% above that. Their employer match is capped at the greater of $26 or 2% of their two-week salary.

Termination payouts excluded from public employee pensions

Utah's Tier II public employee pension system excludes termination payments from pay used to calculate retirement benefits. This includes unused leave, severance, compensatory time, and other special payments. These payments do not boost the employee's pension calculation.

New state hires automatically save retirement money

Qualifying Utah state employees hired on or after July 1, 2023, are automatically enrolled in the state retirement board's 401(k). Each two-week contribution is the lesser of the applicable employer contribution amount or $26, with an equal employer match. This puts money into retirement savings but reduces take-home pay. Employees can opt out, change their contribution, or choose another qualifying account. Contributions below the default amount receive an equal, smaller match.

Appointed state executives gain paid time off

Beginning May 6, 2026, paid time off is included in benefits fixed by the Legislature for covered appointed state executives. This also applies to covered board or commission executives. The provision does not specify how many paid time off hours they receive.

State leave fund supports worker payouts

Beginning May 6, 2026, the State Employees' Leave Trust Fund can receive money set aside for eligible accrued paid time off. It can repay employers for paid time off employees use. It can also pay employees for accrued paid time off when they leave state employment. Fund assets are dedicated to leave benefits allowed by state law and rules.

State workers gain more leave options

Utah state employees can use eligible converted sick leave like paid time off. Existing uses remain, including annual leave, sick leave, and buying continuing medical and life insurance after retirement. Each state agency must also run a centralized leave bank. Employees can voluntarily donate paid time off, but not sick leave. Workers who meet their agency's eligibility rules can receive donated leave.

Sponsors & Cosponsors

Sponsor

  • Lincoln Fillmore

    Republican • Senate

Cosponsors

  • Norman K Thurston

    Republican • House

Roll Call Votes

All Roll Calls

Yes: 166 • No: 84

Senate vote • 3/5/2026

Senate/ concurs with House amendment

Yes: 23 • No: 6

House vote • 3/5/2026

House/ motion to reconsider

Yes: 0 • No: 0

House vote • 3/5/2026

House/ passed 3rd reading

Yes: 57 • No: 17

Senate vote • 3/5/2026

Senate/ uncircled

Yes: 0 • No: 0

Senate vote • 3/5/2026

Senate/ circled

Yes: 0 • No: 0

House vote • 3/5/2026

House/ substituted

Yes: 0 • No: 0

House vote • 3/4/2026

House/ failed

Yes: 34 • No: 40

House vote • 3/4/2026

House/ substituted

Yes: 0 • No: 0

House vote • 3/4/2026

House/ uncircled

Yes: 0 • No: 0

House vote • 3/4/2026

House/ circled

Yes: 0 • No: 0

House vote • 3/2/2026

House Comm - Favorable Recommendation

Yes: 7 • No: 3

Senate vote • 2/26/2026

Senate/ passed 3rd reading

Yes: 18 • No: 9

Senate vote • 2/26/2026

Senate/ substituted

Yes: 0 • No: 0

Senate vote • 2/26/2026

Senate/ uncircled

Yes: 0 • No: 0

Senate vote • 2/24/2026

Senate/ circled

Yes: 0 • No: 0

Senate vote • 2/23/2026

Senate/ passed 2nd reading

Yes: 19 • No: 9

Senate vote • 2/11/2026

Senate Comm - Favorable Recommendation

Yes: 4 • No: 0

Senate vote • 2/11/2026

Senate Comm - Substitute Recommendation

Yes: 4 • No: 0

Actions Timeline

  1. Governor Signed

    3/24/2026
  2. Senate/ to Governor

    3/13/2026Senate
  3. Senate/ received enrolled bill from Printing

    3/13/2026Senate
  4. Senate/ enrolled bill to Printing

    3/12/2026Senate
  5. Enrolled Bill Returned to House or Senate

    3/12/2026
  6. Draft of Enrolled Bill Prepared

    3/6/2026
  7. Bill Received from Senate for Enrolling

    3/6/2026
  8. Senate/ signed by President/ sent for enrolling

    3/6/2026Senate
  9. Senate/ received from House

    3/6/2026Senate
  10. House/ to Senate

    3/5/2026House
  11. House/ signed by Speaker/ returned to Senate

    3/5/2026House
  12. House/ received from Senate

    3/5/2026House
  13. Senate/ to House

    3/5/2026Senate
  14. Senate/ concurs with House amendment

    3/5/2026Senate
  15. Senate/ uncircled

    3/5/2026Senate
  16. Senate/ circled

    3/5/2026Senate
  17. Senate/ placed on Concurrence Calendar

    3/5/2026Senate
  18. Senate/ received from House

    3/5/2026Senate
  19. House/ to Senate

    3/5/2026House
  20. House/ passed 3rd reading

    3/5/2026House
  21. House/ substituted

    3/5/2026House
  22. House/ motion to reconsider

    3/5/2026House
  23. House/ to Senate

    3/4/2026House
  24. House/ failed

    3/4/2026House
  25. House/ substituted

    3/4/2026House

Bill Text

  • Enrolled

    3/12/2026

  • Substitute #4

    3/5/2026

  • Substitute #3

    3/4/2026

  • Substitute #2

    2/24/2026

  • Substitute #1

    2/10/2026

  • Introduced

    1/30/2026

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